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Here are some things to avoid before buying a home

Nov 19

It's not about purchasing the house, you're buying a home. And when you're looking for the perfect home to call your own, you'll need an experienced realtor located in Centralia, IL on your side.

Avoid cash deposits that are large or transfer into your bank account.

The lenders aren't happy when cash suddenly shows up in their bank accounts. In fact, they prefer to see the money going to your down payment in the same bank account for at least two months.

Lenders prefer the two-month period as "seasoning" and see it as an indicator of your stability and ability to repay the loan. When you make a substantial deposit or start doing unusual or unexpected financial transactions prior to the purchase of your home the lender might start to examine the loan and might withdraw it.

Avoid lying or stretching the truth on your loan application.

While you might not want to lie about your finances, however, you must be clear about this. Lying on a loan application is fraud and, if the lender discovers that you mislead in any way, you will most likely lose the loan.

Even stretching the truth or making a mistake that is inaccurate, can cause you significant problems if the truth is discovered. Therefore, be extremely sure that the information you put down is entirely exact. The act of falsifying information is a complete no-no when you apply for a mortgage.

Do not let anyone ask you questions about your credit score.

When you apply for a credit card or loan or attempt to sign up for an entirely new service, such as a cell phone service, the company you are dealing with will likely conduct an inquiry about your credit. It's similar to a mortgage lender's credit inquiry.

However, if the mortgage provider notices you have made inquiries, it might assume you're trying to get more debt. While one or two queries might not be enough to lose the home loan but there's no need to take unnecessary risks when you're close to getting your home.

Spend the money will not be used to pay closing expenses.

For many homebuyers, the period surrounding the home purchase is a time of financial hardship. Money may be tight right now, which can make the money you saved for closing expenses attractive. But avoid spending it.

It's not a great idea to run out of money to pay closing costs just as you're about to move into your new house. Be strong and stay away from spending it if you can help it.

Don't overexert your abilities.

Many lenders will give you the amount you're able to afford to purchase a house. However, what you can be able to qualify for on paper does not necessarily translate into the lifestyle you will live every day.

Some buyers make the mistake of overextending their property. They end up becoming oath-keeper to their home. If you're habitual about going out for dinner time it's a good decision to stay in the middle when purchasing a home.

Don't be a co-signer.

When you co-sign a loan, you are obligating yourself financially. It doesn't matter if you are not the primary person who is the borrower. If the lender is in need of money and is unable to find it elsewhere the lender will look for you to make payments.

Home loan lenders are fully aware of this and are therefore disapproving of any person who decides to co-sign. You should focus on maintaining your credit score and financial stability up to the day you close on the house.

Do not spend more than what your home is worth.

The real estate market can be extremely hot at times. In real estate jargon, we refer to this as a "seller's market." Most of the United States is experiencing this situation over the last few years. Buyers have been placed in a position where winning bidding wars are the norm, not uncommon in some areas.

In reality, you're more likely to think of clever methods to beat the other man to the punch such as an escalation clause within an offer. If you're in an environment such as this it's easy to overspend as a buyer. If you have lost out on several properties, you're likely to want to buy a home that you like.


Cindy Quinn Real Estate Agent

820 E Noleman St, Centralia, IL 62801

(618) 322-6911

[email protected]